Keurig Dr Pepper to buy the Dutch coffee company JDE Peet in a $ 18 billion deal

The two companies said on Monday that Keurig Dr Pepper will accommodate the JDE Peet Coffee Company in a deal of approximately $ 18 billion, which can give a boost to the coffee that fights the giant in the United States.

The deal was reported for the first time before Wall Street Magazine.

Keurig Dr Pepper will pay JDE Peet 31.85 euros ($ 37.3) per share in cash, which represents 33 % in addition to the average share price in the Dutch company for a period of 90 days, which represents the total share purchase of 15.7 billion euros (18.4 billion dollars). Meanwhile, JDE Peet will pay a pre -announced profit of 0.36 euros per share before the deal is closed.

The acquisition is expected to generate $ 400 million in cost synergy over three years.

JDE Pete’s increased by 17.18 % at 08:30 am London time (03:30 et).

Keurig Dr Pepper, which has trademarks such as DR Pepper, 7UP, Snapple, and Green Mountain Coffee, has seen sales in the United States coffee department, a decrease of 0.2 % to $ 900 million in the second quarter due to low coffee pods and Keurig coffee makers.

Keurig Dr Pepper is looking to raise its attractiveness with shoppers who prefer drinking coffee at home, with dumping cold coffee shows in an attempt to attract Starbucks and Dunkin customers.

After the JDE Peet ‘acquisition, Keurig Dr Peppper plans to divide drinks and coffee units as two separate companies included in the United States at the earliest opportunity. Such a step will be effectively relaxing Integration 2018 Between Keurig and Dr Pepper Snaple, which at that time established the third largest beverage company in North America with about $ 11 billion in annual revenue.

After the department, the resulting coffee company is expected to run $ 16 billion in net shared annual sales and will be led by the current financial manager of Keurig Peppper Sudhanshu Priyadarshi.

Meanwhile, the drink company is expected to have a net annual sales of $ 11 billion, and will be determined, upon dismissal, by the current CEO of Keurig Dr Pepper.

Rafael Oliveira, CEO of JDE Peet, will remain in his position to lead the Dutch coffee company to close the acquisition.

– Victor Loh from CNBC contributed to this report